From the following financial statement, calculate (i) Current ratio (ii) Acid test ratio (iii) Inventory turnover (iv)

Question:

From the following financial statement, calculate

(i) Current ratio

(ii) Acid test ratio

(iii) Inventory turnover

(iv) Average debt collection period

(v) Average creditors’ payment period

1500 Sales Cost of sales 1000 Gross profit 500 Current Assets Inventories Debtors Cash Current Liabilities

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

See More Books

Question Posted: Dec 16, 2023 11:53 PM

See More Questions

ANALYZING FINANCIAL RESULTS - HERSHEY Using the attached financial statements of Hershey Company complete the following financial statement analyses. Complete the following for the balance sheet of...
In view of the information provided below provide suggestions for the efficient management of trade debtors. INFORMATION MANAGEMENT OF TRADE DEBTORS Debtor management is central to the effective cash...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Which set of parametric equations is shown in the graph below? Explain your reasoning. (a) (b) x = t y = f
Information about Andrea?s Boards is presented in E6-4. Additional data regarding Andrea?s sales of Xpert snowboards are provided below. Assume that Andrea?s uses a perpetual inventory system....
How do expectations about the future influence the demand curve?
Sinclair Corp. manufactures radiation-shielding glass panels. Suppose Sinclair is considering spending the following amounts on a new TQM program: Sinclair expects the new program to save costs...
The questions in this exercise are based on FedEx Corporation. To answer the questions you will need to download FedExs Form 10-K for the fiscal year ended May 31, 2005 at...
G is an individual GST registrant that files GST returns annually. At the beginning of year 20XX, G incorporated their sole proprietorship into G Inc., a wholly owned subsidiary of G, and registered...
Current ratio is say 1.5: 1, total of balance sheet being 22 lakh. The amount of Fixed assets + Non-current Assets is 10 lakh. What would be the current liabilities?
Calculate financial ratio from the following income statement and balance sheet: Particulars To Opening Stock Raw Material To Purchase of Raw Material To Direct Wages To Manufacturing Expenses To...
What are the main classes of transactions and related account balances for the purchases process?
Test Developer, Inc. (TDI) is raising new capital by using preferred stock. Its investment bankers have estimated that if the company pays a dividend of $9 per share on the new preferred stock, it...
Company XYZ invested $50,000 in a marketing campaign that resulted in generating additional sales of $200,000. The company's operating expenses for the campaign were $20,000. Calculate the Return on...
Ninth National Bank holds $200 million in checkable deposits and $18,000,000 in total reserves. With a required reserve ratio of 8 percent, how much in excess reserves is Ninth National holding?
1) Describe in your own words what type of research situations call for a researcher to use an ANOVA analysis. 2a) Use the Compare Means function (AnalyzeCompare MeansMeans) to compare the means of...
Compute the profit from triangular profit if the bid and ask rate for yen and euro are 130yen/euro, 140yen/euro, and for US$ and euro are 0.8euro/US$ and 0.9euro/US$, and for US$ and yen are...
Carla Inc. has the following budgeted data for 2010: Carla, Inc.: Budget Data Cash balance, beginning $10,000 Collections from customers $150,000 Expenses: Direct materials purchases $25,000...
(a) Find the equation of the tangent line to f(x) = x 3 at the point where x = 2. (b) Graph the tangent line and the function on the same axes. If the tangent line is used to estimate values of the...
An inexperienced accountant for Corfeld Corporation showed the following in Corfelds 2012 income statement: Income before income taxes $300,000; Income tax expense $72,000; Extraordinary loss from...
On January 1, 2012, Gustin Inc. changed from the LIFO method of inventory pricing to the FIFO method. Explain how this change in accounting principle should be treated in the companys financial...
Using these data from the comparative balance sheet of Rosalez Company, perform horizontalanalysis. December 31, 2012 $ 460,000 December 31, 2011 $ 400,000 Accounts receivable Inventory 3,164,000...
How does lean production impact the overall lead time of new product development and introduction?
How does lean production integrate with other management philosophies, such as Agile and Kaizen?
List out current and past theories and thinking about innovation. Provide an outline of each theory and how you could apply the theory and think in practice. Describe any five types of techniques...

From the following financial statement, calculate (i) Current ratio (ii) Acid test ratio (iii) Inventory turnover (iv)

Question:

1500 Sales Cost of sales 1000 Gross profit 500 Current Assets Inventories Debtors Cash Current Liabilities Trade Creditors 125 250 225 200

Step by Step Answer:

To calculate the financial ratios requested well use the given values from the financial statement T...View the full answer

Financial Accounting

Students also viewed these Business questions